Options trades suggest bond sell-off may be ending as utilities and bond futures see bullish bets.
Recent options activity indicates a potential slowdown in the U.S. bond sell-off. A notable $1 million options trade in the State Street Utilities Select Sector SPDR ETF (XLU) bets the sector will stabilize or rally, reflecting belief that rising rates may have peaked. Additionally, a $4.4 million call spread on SOFR futures signals expectations for short-term rates to decline. These trades highlight growing investor confidence that bond yields might have topped out, potentially easing pressure on rate-sensitive sectors like utilities.
XLU holds a market cap of $21.33 billion and trades at $39.65 with a slight 0.08% decline on Pluang as of Oct 02, 2026 18:02 WIB. Despite the recent options activity suggesting a potential bond sell-off slowdown, Pluang data shows that 98% of order activity for XLU is selling, indicating cautious sentiment among investors. Meanwhile, TLT, another bond-related ETF, has a market cap of $46.22 billion and is up 0.14% at $77.82, with a more balanced order activity of 57% sell and 43% buy.
